Solar Energy Market Size Report, Industry Share, Analysis, Growth, Forecast 2030

Solar Energy Industry Prospective:

The global solar energy market size was worth around USD 90.4 billion in 2022 and is predicted to grow to around USD 215.9 billion by 2030 with a compound annual growth rate (CAGR) of roughly 11.5% between 2023 and 2030.          

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Solar Energy Market: Overview

The term "solar energy" refers to the power derived from solar radiation, which may be captured and transformed into a variety of energy sources, including heat and electricity. It offers a desirable substitute to conventional fossil fuels, which are limited and cause climate change because of their abundance and renewable nature. Different technologies may be used to capture solar energy, such as photovoltaic cells, which utilize heat from the sun to produce electricity, or concentrated solar power systems, which use heat from the sun to produce hot water for various uses or convert sunlight straight into electricity. Solar energy usage provides several advantages, including lowering greenhouse gas emissions and reducing reliance on fossil fuels as well as promoting a cleaner and more sustainable energy future.

Key Insights

• As per the analysis shared by our research analyst, the global Solar Energy market is estimated to grow annually at a CAGR of around 11.5% over the forecast period (2023-2030).
• In terms of revenue, the global Solar Energy market size was valued at around USD 90.4 billion in 2022 and is projected to reach USD 215.9 billion, by 2030.
• The growing environmental concern owing to the rising greenhouse gas emissions drives the solar energy market growth over the forecast period.
• Based on the technology, the photovoltaic systems segment is expected to capture the largest market share over the forecast period.
• Based on the solar module, the polycrystalline segment is expected to dominate the market during the forecast period.
• Based on the end-use, the industrial segment is expected to dominate the market over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the forecast period.

Solar Energy Market: Growth Drivers

Growing environmental concerns drive market growth

The demand for solar energy, which is a sustainable and clean form of energy, is expected to increase due to the rising environmental concerns caused by the release of dangerous greenhouse gases that cause air pollution. For example, switching to solar power instead of fossil fuels for energy generation may significantly lower carbon dioxide emissions, which cause an increase in global temperatures and contribute to climate change. Extreme weather conditions are brought on by rising temperatures, including rising sea levels, glacier melt, and ecological changes. By lowering the demand for fossil fuels and limiting greenhouse gas emissions, solar energy usage lowers the carbon footprint. For instance, the Lawrence Berkeley National Laboratory estimates that utility-scale solar electricity generates between 394 and 447 MWh per acre annually. As a result, one acre of solar panels emitting zero emissions annually prevents 121 to 138 metric tons of carbon dioxide from entering the atmosphere.

Solar Energy Market: Restraints

High upfront cost limits market expansion

Although the price of solar panels has come down over time, governments, businesses, and households may still find it difficult to afford the initial expenditures of solar systems. Although incentives and financing choices support easing this restriction, some people still have affordability concerns. For instance, secondary sources indicate that the average cost of solar panels is roughly $16,000, ranging from $4,500 to $36,000 depending on the kind and model, as well as any inverters and the BOS, or balance of the system, which refers to all necessary operating equipment. Therefore, the high upfront cost of solar energy installation is expected to hamper the solar energy industry growth.

Solar Energy Market: Opportunities

Growing product launches offer a lucrative opportunity for market growth

The growing product launches offer a lucrative opportunity for solar energy market growth during the forecast period. For instance, in February 2023, Green World Renewable Energy LLC, a top provider of Solar Permit Designing & PE Stamping services in the USA, unveiled a brand-new and ground-breaking solar panel and combiner box system at the ISNA Exhibition in Long Beach, California. These solar energy products offer a reliable and efficient way to harvest solar energy. This system offers a clean, affordable, and sustainable alternative to conventional energy sources that helps to address the rising need for renewable energy sources. An essential part of the system that aids in managing and optimizing the electricity produced by the solar panels is the combiner box. It makes it simpler to administer and monitor the functioning of the entire system by combining the output from several panels into a single stream. The combiner box has cutting-edge protective measures to stop overloading and short-circuits and was built with reliability and security in mind.

Solar Energy Market: Challenges

Environmental concern poses a challenge to market growth

Solar panel manufacturing procedures that employ rare materials and a lot of energy can harm the environment during both production and disposal. Even though they should always be practiced, recycling and proper disposal are crucial. Therefore, the environmental impact related to the disposal of solar panels poses a major challenge to the market growth during the projected period.   

Solar Energy Market: Segmentation

The global Solar Energy industry is segmented based on technology, solar module, application, end-use, and region.

Based on the technology, the global market is bifurcated into photovoltaic systems and concentrated solar power systems. The photovoltaic systems segment is expected to capture the largest market share over the forecast period. PV systems are frequently utilized in distributed generation to enable power production by individual residences and businesses. This improves energy resiliency and decreases reliance on centralized power facilities. These systems are frequently installed on business and residential building rooftops to provide clean energy and save power costs. The ability to feed excess power into the grid due to net metering benefits customers financially.

Based on the solar module, the solar energy industry  is bifurcated into cadmium telluride, amorphous silicon cells, monocrystalline, polycrystalline, and others. The polycrystalline segment is expected to dominate the market during the forecast period. To create polycrystalline solar panels, raw silicon is first melted and then cast into square or rectangular molds. The outcome of this procedure is a panel that contains several silicon crystals of various sizes, giving it a distinctive blue or speckled look. Polycrystalline panels are an affordable option for many applications due to the typically less expensive production method compared to monocrystalline panels. Thus, the cost-effective nature of polycrystalline solar modules drives the segment expansion.

Based on the application, the global solar energy market is bifurcated into electricity generation, lighting, heating, and charging.

Based on the end-use, the solar energy industry  is bifurcated into residential, commercial, and industrial. The industrial segment is expected to dominate the market over the forecast period. The growth in population and global industrialization have increased the demand for various kinds of commercial goods. The need for power increased as a result of the growth in output, which in turn caused a boom in the use of solar concentrators in the industry that produces electricity. Desalination facilities are also powered by solar concentrator energy in nations with limited water supplies, particularly those in the Middle East area.

Solar Energy Market: Report Scope

Solar Energy Market: Regional Analysis

Asia Pacific is expected to dominate the market growth over the forecast period

The Asia Pacific is expected to dominate the global solar energy market during the forecast period. Numerous nations in the Asia-Pacific area, including China, India, and Japan, have adopted ambitious renewable energy targets and encouraging policies to promote the use of solar energy. In addition to solar installation incentives, these policies also include feed-in tariffs and renewable portfolio criteria. The expansion of the solar energy sector in the region has been made possible by strong government backing and solid policy frameworks. For instance, the International Renewable Energy Agency estimates that between 2021 and 2022, the total installed capacity of solar energy increased by more than 110 GW. The overall installed capacity was around 485 GW in 2021, and it increased to 597 GW in 2022, with China and India controlling the majority of the installed capacity. Therefore, the aforementioned statistics are expected to drive the market growth during the forecast period.

Solar Energy Market: Competitive Analysis

The global Solar Energy market is dominated by players like:

• ReneSola
• Trina Solar Limited
• First Solar Inc.
• Yingli Solar
• JA Solar
• RGS Energy
• Sharp Corporation
• Waaree Grou12
• Motech Industries Inc.
• Hanwha Q Cells
• eSolar Inc.
• SunPower Corporation
• Tata Power Solar Systems Ltd.
• Canadian Solar Inc.
• Azure Power and Urja Global Limited

The global Solar Energy market is segmented as follows:

By Technology

• Photovoltaic Systems
• Concentrated Solar Power Systems

By Solar Module

• Cadmium Telluride
• Amorphous Silicon Cells
• Monocrystalline
• Polycrystalline
• Others

By Application

• Electricity Generation
• Lighting
• Heating
• Charging

By End-use

• Residential
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa